Replacing the Xbox 360 Core SKU, the only model of the console that did not pack some type of storage medium for saved games and downloads, the Arcade carries the same $279.99 price point and includes a 256MB Memory Card and a wireless controller as well as a a disc containing the full versions of five Xbox Live Arcade titles: Namco Bandai's Pac-Man Championship Edition, Carbonated Games' Uno, MumboJumbo's Luxor 2, Bizarre Creations' Boom Boom Rocket, and Sprout Games' Feeding Frenzy.

"As families gather together this holiday, it's the perfect time to launch a new low-priced, high-value Xbox 360 that plays games, TV shows and music for everyone to enjoy," Microsoft global marketing VP Jeff Bell said with a heartwarming seasonal grin.

The Xbox 360 Arcade is available in North America beginning today, and will hit the UK this Friday, October 26, where it will sell for £199.99. As with all Xbox 360 Elite units and recently manufactured Premium models, the Arcade unit supports HDMI output.